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Industry 4.0 - The Challenges Faced By India To Successfully Incorporate It

In my last post , I wrote about the numerous openings and opportunities Industry 4,0 presents as it dawns a new era upon us. 


As with any new or developing technology introduced into a relatively traditional sector of functioning, the implementation of Industry 4.0 too comes ridden with challenges.


For the major part of India’s history, the focus was on agricultural systems, IT being an introduction only in the later years of it’s development. 

Therefore, there’s a baseline assessment of requirements and incorporation of digital manufacturing elements and existing capabilities that’s required, due to the diffused nature of the Indian Manufacturing industry. This documentation is a prerequisite to the introduction of Industry 4.0 in these sectors.


Since more than 80% of the manufacturing industry in India is in the MSME sector, the implementation of Industry 4.0 is a major challenge.



The replacement and/or upgradation of legacy systems and production infrastructure are major challenges because the indigenous capability of integration of I4.0 systems in existing production infrastructure is limited. T

he standardisation and adoption of a standard architecture similar to that of the Reference Architecture model for I4.0 in Germany doesn’t exist in India yet. This could be a major challenge, as is the policy for standardisation.


As cyber security in digital manufacturing remains a challenge, enabling I4.0 isn’t the wisest option considering the rising level of cyber crimes .

Most other industries are not aware of the advantages of moving to  an Industry 4.0 - based production system. The general impression is that it requires high capex, exceptional skills and that the returns may not be commensurate.



The non-availability of a comprehensive Broad-Band infrastructure is another challenge. Hopefully it will be in place by 2022.


There is a general apprehension that the introduction of Industry 4.0 in production systems will result in excessive unemployment. Many debates on the subject demand reskilling of the workforce in a way that’s suitable for I4.0, only time will tell which way this is bound to go.



Another challenge would be in the Artificial Intelligence scene. Automation/VR/AI Analytics / machine to machine communication will have to be developed and put in place through a focused industry or academia driven R&D programme for faster and cost effective flexible customised introduction of Industry 4.0 technology.


The machine tool industry in the country imports most of the smart machines resulting in high Capex and operating cost . Sustaining Industry 4.0 production infrastructure without a sound indigenous capability to design & manufacture smart machines remains a challenge as has been witnessed when CNC machines were introduced in India.


Also, providing open source software and hardware with flexibility for customisation in the absence of standards in a multivendor service providers environment remains a challenge.



At the outset, India needs to put in place a roadmap for graduating to Industry 4.0 involving all stake holders from industry, academia, research institutions and international collaborators to set up strong indigenous base for all the building blocks of Industry 4.0 , and set out priorities for upgradation sectorwise through national & international collaboration in simulation , design of system, acquisition of smart machines, development of software and (re)skilling of workforce.



Location: India

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